Bazedoxifene is a third generation selective estrogen receptor modulator. It is used in the prevention and treatment of postmenopausal osteoporosis (Miller et al., EP0802183). Conventional processes for preparing 5-benzyloxy-2-(4-benzyloxyphenyl)-3-methyl-1H-indole are disclosed in U.S. Pat. No. 5,998,402, EP 0802183, World application WO-2008098527 and Journal of Medicinal Chemistry, 2001, volume 44, page no. 1654-1657.
The process disclosed in U.S. Pat. No. 5,998,402 may be summarized as following reaction Scheme-1.

In the above process according to the reaction 2-bromo-4′-benzyloxy propiophenone is reacted with 4-benzyloxy aniline hydrochloride in dimethyl formamide. The process has the following disadvantages: The use of bromine calls for special safety measures and equipment to handle, the process involves isolation of bromo intermediate and results in only 33-54% overall yield. Hence the process is not economical.
The process disclosed in World application WO-2008098527 may be summarized in the following

The process is essentially similar to the scheme-1. In the above process, the intermediate N-(4-benzyloxyphenyl)-α-amino-4-benzyloxy propiophenone is isolated and treated with an excess of the aniline reagent to complete the cyclisation step. The reaction is carried out in an organic solvent and in the presence of an inorganic or an organic base from a group including sodium carbonate, potassium carbonate, triethylamine or diisopropylamine.
The process (Scheme-2) has the following disadvantages. A large excess of 4-benzyloxy aniline hydrochloride is required though later recovered through isolation from mother liquors. The overall yield is only 65-70%. The second step of the reaction is conducted in a pressure vessel at a temperature of 100-120° C. Hence the above process suffers from avoidable reaction conditions of reagent quantity, temperature and pressure.
Thus, there is a need for a simple, less cumbersome and better yielding process for the manufacture of 5-benzyloxy-2-(4-benzyloxyphenyl)-3-methyl-1H-indole of the formula-1, the key intermediate in the manufacture of bazedoxifene.